Energy Risk Asia Energy Finance House of the Year: SG CIB

The deal was also complex, combining reserves-based financing with a relatively long tenor of 18 years. Nonetheless, the bank’s client says it is happy with the result. “SG CIB provided a rare blend of technical and financial expertise,” says Jumpei Sakaue, Indonesia-based project finance manager at Sarulla. “It was instrumental in bridging the engineering and financing aspects of this project, as well as assessing and modelling technical risks.”

The deal is set to be followed by others, Clément de Givry predicts. Indonesia has 40% of the world’s geothermal capacity and annual electricity demand growth of above 8%, as well as the region’s lowest rate of electrification, according to the Asian Development Bank. “Indonesia has been rushing to build more coal-fired power plants, but geothermal and hydro plants offer a means for it to balance its energy mix. There will be more of these transactions,” she says